Friday April 08, 2005

ChevronTexaco CEO banking on peak oil situation

sfgate.com :

There's been a lot of ink spilled this week about the risk ChevronTexaco's chief exec, David O'Reilly, has taken in paying about $16.4 billion for rival Unocal and its oil resources.

Because Unocal's stock has soared 75 percent over the past year, the thinking goes, ChevronTexaco could find itself with a white elephant on its hands if currently sky-high oil prices end up coming back to earth.

Well, I'm prepared to say this much: O'Reilly isn't stupid. He knows more than most people about world oil markets. So if the head of San Ramon's ChevronTexaco is prepared to gamble more than 16 billion bucks on oil prices staying at stratospheric levels, I'm ready to give him the benefit of the doubt.

And reading between the lines, that means only one thing.

Peak oil.

We're basically there.

(2005-04-08 22:49:51 SGT) [Energy] Permalink

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